Construction in negative list

The Finance Ministry has included sections of construction under the list of services exempted from the purview of tax on services.

The exemption, a part of a list of 22 items in the negative list, includes construction, repair and alteration of specified public infrastructure projects, construction of a residential building of a single dwelling unit, and renting for personal dwelling.

The multinational auditing firm, Grant Thornton, points out that following the first concept paper proposing a negative list in August, the Finance Ministry has published a second version incorporating feedback received from the public and brings the transition to the Goods and Services Tax closer.

The shift to a negative list means that all activities, except those mentioned in the list, would attract service tax, thus widening the service tax net. It is expected that it would significantly reduce disputes associated with interpretation and classification of services.
 

According to the concept paper available on the Ministry's website, the entry relating to construction has been revisited. It is felt that the tax paid on construction activities isn't available as credit under the existing rules except as sub-contractor. Thus, a case is made for keeping certain infrastructure projects within the negative list, particularly those that are meant for larger public good. Construction of such projects, together with projects meant for social welfare, and for non-commercial use of the government, will create definitional issues and amount to end-use exemption.

Renting of personal dwellings is included in the negative list only to the extent of Rs 1 lakh per month per dwelling, to cover high-end apartments.

H&R Johnson launches tile range

H& R Johnson (India), a division of Prism Cement Limited, has launched an array of premium products across categories – flooring, bath fittings and modular kitchens, at the Acetech 2011 in Chennai.

The range includes Johnson Cristal — engineered marble and quartz that offers the look and feel of natural marble and granite.

In the intelligent series, H&R Johnson offers ‘Johnson Senso' a urinal with a sensor at the base. It has a detection zone of 70 cm, and doesn't need an external power connection. The product is eco-friendly and uses just 2.6 litres of water pre and post-flush put together, as compared to some other sensor urinals' flushing of 3 to 3.5 litres.

In the tile segment, Johnson Digital offers 30 designs in 3D. This digital series consists of elevated collections, marble effect on structured surfaces and wood finish.

Mr Vijay Aggarwal, Managing Director, Prism Cement Limited, said in the release that the division has launched some innovative products like Johnson Germ Free, Johnson Digital, Johnson Scratchfree, Marbonite Stainfree and Marbonite GVT to meet customers' needs. A top-of the-line intelligent water closet called “Intellimate” is on offer through the bath division. ‘Intellimate' has smart features like remote sensor, nightlight, MP3 player, a massage cleaner, air dryer and much more.

Zoomlion and ElectroMech join hands

Zoomlion, a leading construction machinery manufacturer has announced plans to partner with India's largest industrial crane manufacturer ElectroMech, to manufacture and sell tower cranes in India.

According to a press release from the company, this alliance is in line with Zoomlion's globalisation plans and comes soon after its acquisition of CIFA, Italy, and the topless tower crane technology of JOST, Germany.

China-headquartered Zoomlion has a wide range of construction equipment in its production basket. Established in 1992, it now designs and manufactures products across 13 different categories and 66 series, comprising more than 640 different varieties of products. With annual sales exceeding $ 8 billion in 2010, Zoomlion is listed on the Shenzhen and Hong Kong stock markets.

Tower Crane is one of the most important products in Zoomlion's portfolio. It currently manufactures three different series of tower cranes — hammer-head, luffing-jib and topless tower cranes, spread across 40 different models.

ElectroMech, based in Pune, is India's largest manufacturer of industrial overhead cranes in terms of volumes. ElectroMech specialises in designing, selling, manufacturing, erecting and commissioning of a diverse range of products in the industrial cranes product spectrum. Apart from fully-customised cranes, ElectroMech also offers a range of standardised products to the Indian market through its association with ABUS, Germany.

Through its services subsidiary, Cranedge, ElectroMech also offers a wide range of post-sales services to the industry, involving Annual Maintenance Contracts, Modernisations and spare-part support.